CHIFENG GOLD (06693.HK): Q3 Net Profit Down 41.84% to RMB 553mn; 2026 Gold Output Target Raised to 12.5-13 Tonnes

NewTimeSpace News: On 23 October 2026, Chifeng Jilong Gold Mining Group Limited (the "Company") announced, pursuant to Rules 13.09 and 13.10B of the Listing Rules and Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong), its unaudited third quarterly report for the nine months ended 30 September 2026, prepared under the PRC Enterprise Accounting Standards. In the third quarter, the Company recorded revenue of RMB 3,069,045,310.15, down 8.99% year on year; total profit of RMB 1,077,239,042.34, down 24.76%; net profit attributable to shareholders of the listed company of RMB 553,168,943.90, down 41.84%; net profit excluding non-recurring gains and losses of RMB 548,318,872.87, down 40.01%; net cash flow from operating activities of RMB 1,236,150,608.41, down 13.13%; and basic earnings per share of RMB 0.29, down 42.00%. For the period from the beginning of the year to the end of the reporting period, revenue was RMB 10,086,817,612.67, up 16.69% year on year; total profit was RMB 4,268,039,580.04, up 29.59%; net profit attributable to shareholders of the listed company was RMB 2,285,461,365.11, up 11.05%; net profit excluding non-recurring items was RMB 2,286,680,545.19, up 12.87%; net cash flow from operating activities was RMB 3,116,535,861.77, up 2.66%; and basic earnings per share were RMB 1.21, up 6.14%.

The announcement disclosed that the year-on-year declines in the third quarter's key accounting data and financial indicators were mainly due to lower gold sales volume, while the year-on-year increases for the year to date were mainly attributable to higher gold prices. As at 30 September 2026, the Company's total assets were RMB 25,838,122,198.20, up 3.43% from the end of the prior year; net assets attributable to shareholders of the listed company were RMB 14,785,899,418.10, up 10.22%; and the gearing ratio was 28.95%, down 4.96 percentage points from the end of the prior year. From January to September 2026, self-produced gold output was 8,908.81 kg and sales were 9,065.20 kg at an average selling price of RMB 974.44 per gram, with output and sales down 16.78% and 15.03% year on year respectively and the selling price up 33.56%; electrolytic copper output was 7,383.57 tonnes and sales 7,402.75 tonnes at RMB 92,946.95 per tonne, up 52.66%, 51.96% and 32.71% respectively. The operating cost of self-produced gold was RMB 403.33 per gram and the all-in sustaining cost RMB 494.31 per gram, up 23.40% and 38.71% from RMB 326.86 and RMB 356.37 in the same period last year.

The Company stated that the year-on-year rise in the all-in sustaining cost of self-produced gold was mainly due to higher taxes and levies, increased sustaining capital expenditure and higher fixed cost absorption following lower output at certain mines: higher gold prices increased resource tax, royalty and sustainable development levies, and from April 2026 Ghana's resource tax moved from 5% to a tiered 5% to 12% rate; the Sepon gold-copper mine in Laos purchased 35 dump trucks in the third quarter and the Wassa gold mine in Ghana increased investment in equipment maintenance and infrastructure works; and the conversion of the hoisting system from single-rope to multi-rope at Jilong Mining, the reconstruction of several blind shafts at Wulong Mining, the annual scheduled major overhaul at the Sepon processing plant and safety self-inspections conducted at domestic mines as required reduced domestic gold output. Based on actual performance in the first three quarters, the Company has updated its 2026 gold production and sales target to 12.5 to 13 tonnes, with fourth-quarter target output of about 3.5 to 4 tonnes, and cautioned that the update does not constitute a commitment to the production and sales target. In addition, the Company disclosed progress on the change of control: on 22 March 2026, controlling shareholder and actual controller Ms. Li Jinyang and her concert party Zhejiang Hanfeng entered into a share transfer agreement with Zijin Gold, a wholly-owned subsidiary of Zijin Mining, to transfer their aggregate 241,925,746 A shares, and on the same day the Company entered into a strategic investment agreement with Zijin Gold for the subscription of 310,902,731 H shares; on 28 September 2026 the parties entered into supplemental agreements extending the deadline for satisfying the conditions precedent and the long-stop date for the H-share issue to 30 November 2026; the transactions were completed on 22 October 2026, with Zijin Gold becoming the Company's single largest shareholder group.